Job security agreed for VW's battery subsidiary - Volkswagen Secures Wage Deal for Battery Workers Until 2030

Volkswagen has secured a new wage agreement for its battery division, PowerCo, in Salzgitter. The deal promises job security until at least 2030 and includes a 5.5% pay rise for employees. It marks a key step as the company expands its electric vehicle battery production in Germany.

The company launched in-house battery manufacturing at the Salzgitter plant last December. Now, a collective bargaining agreement aims to protect jobs and wages for years to come. Under the terms, no operational layoffs will occur between March 1, 2026, and December 31, 2030.

The agreement also guarantees a 5.5% increase in base wages. Wages can be renegotiated starting March 31, 2027, if either side requests changes. For the deal to take effect, both Volkswagen and employee representatives must approve it by February 28.

While the agreement ensures stability, the exact number of jobs created or planned at the site remains undisclosed.

This long-term deal provides certainty for workers at PowerCo's Salzgitter facility. The 5.5% wage boost and job protections will last until the end of 2030. Any future adjustments to pay can begin in early 2027 if either party pushes for talks.